2026-18978RuleSignificantWallet

DOL mandates UC data disclosure for fraud audits and oversight

Published Date: 9/16/2026

Rule

Summary

The Department of Labor (DOL or the Department) is issuing this final rule to require the disclosure of confidential unemployment compensation (UC) information to Federal officials for purposes of UC program oversight and audits. This rule will ensure that Federal officials, including the Department's Office of Inspector General (DOL- OIG), are able to obtain the information needed from State UC agencies to ensure proper oversight of the UC programs and to hold State UC agencies accountable for identifying and addressing fraud in UC programs.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

States must send UC data to Federal auditors

The rule requires State unemployment agencies to disclose confidential unemployment compensation (UC) information to Federal officials for UC program oversight and audits, including the Department of Labor Office of Inspector General (DOL-OIG). The rule is effective November 16, 2026, and States that need to change their laws to comply must do so by September 16, 2027.

Other Federal requestors must justify UC data use

Federal officials other than the Department, DOL-OIG, and the Government Accountability Office must submit written requests to States that explain how the UC information will be used for UC program oversight and audits, cite their authority, and limit use to the stated purposes (except as required by Federal law). This requirement is added to 20 CFR 603.10 to increase transparency about who asks for data and why.

National UC claims database to be considered later

The Department said it will seek more public input on creating a national UC claims database and will publish a Supplemental Notice of Proposed Rulemaking if it pursues that database. This final rule does not create a national UC claims database.

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Key Dates

Published Date
Rule Effective
9/16/2026
11/16/2026

Department and Agencies

Department
Independent Agency
Agency
Labor Department
Employment and Training Administration
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